Showing papers on "Signalling theory published in 2018"

Reading on and between the lines: risk identification in collaborative and adversarial buyer–supplier relationships

Abstract: Purpose This paper aims to investigate how supply chain risks can be identified in both collaborative and adversarial buyer–supplier relationships (BSRs) Design/methodology/approach This research includes a multiple-case study involving ten Chinese manufacturers with two informants per organisation Data have been interpreted from a multi-level social capital perspective (ie from both an individual and organisational level), supplemented by signalling theory Findings Buyers use different risk identification strategies or apply the same strategy in different ways according to the BSR type The impact of organisational social capital on risk identification is contingent upon the degree to which individual social capital is deployed in a way that benefits an individual’s own agenda versus that of the organisation Signalling theory generally complements social capital theory and helps further understand how buyers can identify risks, especially in adversarial BSRs, eg by using indirect signals from suppliers or other supply chain actors to “read between the lines” and anticipate risks Research limitations/implications Data collection is focussed on China and is from the buyer side only Future research could explore other contexts and include the supplier perspective Practical implications The types of relationships that are developed by buyers with their supply chain partners at an organisational and an individual level have implications for risk exposure and how risks can be identified The multi-level analysis highlights how strategies such as employee rotation and retention can be deployed to support risk identification Originality/value Much of the extant literature on supply chain risk management is focussed on risk mitigation, whereas risk identification is under-represented A unique case-based insight is provided into risk identification in different types of BSRs by using a multi-level social capital approach complemented by signalling theory

Signalling Responsibility? Applying Signalling Theory to the ISO 26000 Standard for Social Responsibility

Abstract: Many global challenges cannot be addressed by one single actor alone. Achieving sustainability requires governance by state and non-state market actors to jointly realise public values and corporate goals. As a form of public–private governance, voluntary standards involving governments, non-governmental organisations and companies have gained much traction in recent years and have been in the limelight of public authorities and policymakers. From a firm perspective, sustainability standards can be a way to demonstrate that they engage in corporate social responsibility (CSR) in a credible way. To capitalise on their CSR activities, firms need to ensure their stakeholders are able to recognise and assess their CSR quality. However, because the relative observability of CSR is low and since CSR is a contested concept, information asymmetries in firm–stakeholder relationships arise. Adopting CSR standards and using these as signalling devices is a strategy for firms to reduce these information asymmetries, by revealing their true CSR quality. Against this background, this article investigates the voluntary ISO 26000 standard for social responsibility as a form of public-private governance and contends that, despite its objectives, this standard suffers from severe signalling problems. Applying signalling theory to the ISO 26000 standard, this article takes a critical stance towards this standard and argues that firms adhering to this standard may actually emit signals that compromise rather than enhance stakeholders’ ability to identify and interpret firms’ underlying CSR quality. Consequently, the article discusses the findings in the context of public-private governance, suggests a specification of signalling theory and identifies avenues for future research.

Corporate Reputation: Do Board Characteristics Matter? Indian Evidence:

Abstract: Drawing inference from signalling theory, the study attempts to examine the relation between corporate governance and corporate reputation in the Indian context. There is hardly any study d...

The signalling role of audit committee characteristics and the cost of equity capital: Australian evidence

Abstract: The purpose of this study is to examine whether audit committee characteristics influence the cost of equity capital.,Drawing on signalling theory, this study hypothesises that the presence of an AC with adequate characteristics serves as a market “signal” of the credibility of the effective monitoring process and hence affects the perception of capital providers on the cost of equity capital. The study uses a multiple regression analysis on data collected from a sample of top Australian listed firms.,The study finds that audit committee characteristics such as size, meeting frequency and independence are significantly and negatively associated with the cost of equity capital. However, there is no significant evidence that the financial qualifications of audit committee directors are associated with the cost of equity capital.,While there have been several studies examining the cost of equity capital, there is very limited research on the cost of capital in Australian firms. The study aims to fill this gap, in part, and contribute to the literature on corporate governance and signalling theory.